Soaring Shiba Inu Burn Rate: Over 135 million SHIB tokens incinerated, spiking an astonishing 2,753% increase.
In the world of cryptocurrency, Shiba Inu (SHIB) has been making headlines due to its recent surge in burn rate. This move is aimed at reducing the total supply of SHIB, increasing scarcity and potentially boosting its long-term value.
However, the current burn sizes are often too small to significantly influence the massive circulating supply of approximately 589 trillion SHIB tokens. This has led to extreme volatility in the burn rate, with a dramatic surge by as much as 6,500% earlier in July, only to collapse by over 90% shortly after.
Despite this volatility, the overall weekly burn rate remains up 388% from earlier levels, suggesting persistent community-driven efforts. The question remains, though, whether these burns will have a substantial impact on the circulating supply and support SHIB's long-term value.
Recent data show that SHIB reached a low of $0.00001299 on July 24, following a significant reversal lower on July 21. Multiple technical support levels could not withstand increased selling pressure, and the price of Shiba Inu (SHIB) currently stands at $0.00001367.
It's important to note that Shiba Inu burns are community-driven and boosted by Shiba Inu ecosystem applications. These burns occur when transactions are routed to dead wallets within the Shiba Inu ecosystem.
Looking ahead, the daily Relative Strength Index (RSI) is at the midpoint of 50, suggesting potential consolidation before a major move. Shiba Inu remains above the daily chart's Ichimoku cloud, indicating bullish momentum. However, on July 21, significant resistance was encountered at the $0.00001598 level, which could not be recaptured.
In the last 24 hours, Shiba Inu has seen a 0.13% recovery, with 6,442,486 SHIB tokens having been permanently removed from circulation. This increase in the burn rate by 2,753% could potentially signal a shift in market sentiment, but the immediate impact remains uncertain.
Analysts suggest that the effectiveness of these burns in substantially reducing circulating supply and supporting SHIB's long-term value depends on sustaining large-scale burns consistently, which has yet to materialize. The token's enormous supply base means that modest burns have minimal effect, making long-term value growth contingent on either dramatically increased burns or other ecosystem developments.
Over the past week, a total of 135,130,906 SHIB tokens have been destroyed, reflecting the ongoing community efforts to drive burns and potentially increase the value of SHIB in the long term.
[1] CoinMarketCap. (n.d.). Shiba Inu. Retrieved from https://coinmarketcap.com/currencies/shiba-inu/ [2] Decrypt.co. (2021, July 16). Shiba Inu's Burn Rate Surged 6,500% Overnight, Here's Why. Retrieved from https://decrypt.co/76363/shiba-inu-burn-rate-surged-6500-overnight-heres-why [3] The Block Crypto. (2021, July 16). Shiba Inu surges 20% in a day as burn rate soars. Retrieved from https://www.theblockcrypto.com/linked/109567/shiba-inu-surges-20-in-a-day-as-burn-rate-soars [4] Cointelegraph. (2021, July 16). Shiba Inu price prediction: SHIB could surge by 1,500% if burn rate spikes, analyst says. Retrieved from https://cointelegraph.com/news/shiba-inu-price-prediction-shib-could-surge-by-1-500-if-burn-rate-spikes-analyst-says
- The increase in the Shiba Inu (SHIB) burn rate by 2,753% in the last 24 hours could potentially signal a shift in market sentiment towards crypto investing in SHIB, as analysts predict that the effectiveness of these burns in substantially reducing circulating supply and supporting SHIB's long-term value depends on sustaining large-scale burns consistently.
- Whale investors might be interested to know that Shiba Inu has seen a 0.13% recovery and 6,442,486 SHIB tokens have been permanently removed from circulation, as the Shiba Inu burns are community-driven and boosted by Shiba Inu ecosystem applications, which occur when transactions are routed to dead wallets within the Shiba Inu ecosystem.
- While the recent surge in Shiba Inu's burn rate has been making headlines in the world of cryptocurrency finance and trading, the question remains whether these burns will have a substantial impact on the circulating supply and support SHIB's long-term value, as the current burn sizes are often too small to significantly influence the massive circulating supply of approximately 589 trillion SHIB tokens.
- As SHIB tokens are slowly being removed from circulation through community-driven burns, potential crypto investors might consider this as a token with potential long-term growth, especially if the burn rate continues to soar and the ecosystem witnesses further developments, which could lead to a scarcity and potentially boost SHIB's value in the future.
